Short and Shearer Are Two Friends Who Want to Begin

question 75

Multiple Choice

Short and Shearer are two friends who want to begin an entrepreneurship venture as business partners.They need to decide whether to start up a new business or to buy an existing business.To do this,Short and Shearer need to weigh the pros and cons of each in order to see what the best strategy for them would be. Which of the following,if true,would strengthen the case for Short and Shearer buying an existing business?

• A)Short and Shearer have a lot of ideas as to the kind of business they would like to own.
• B)An existing business would have an existing customer base that Short and Shearer would inherit.
• C)An existing business for sale might have difficulties that Short and Shearer would inherit.
• D)Short and Shearer greatly value independence.
• E)Existing small businesses are usually carrying debts.

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Definitions:

Purchase Price

Purchase Price is the amount of money paid to acquire a good, service, or property.

Nike Shoes

Brand of athletic footwear and apparel designed and marketed by the American multinational corporation Nike, known for its innovative design and cultural impact.

Global Commodity Chain

A worldwide network of production and distribution processes through which a product passes until it reaches the consumer.

High-profile

describes something or someone that attracts a lot of public attention or media coverage, often due to their importance or controversy.